Monday, 12 August 2013

Rand holds its ground

Trade report 12/08/2013

ZAR outlook

USD/ZAR expected range: 9.80 – 9.90

The Rand has started the new week on a stronger bias as it has held its ground after last week’s recovery. The recovery was spurred by positive Chinese data. This has meant that investor sentiment is slightly more upbeat.

Local news

Although there has been some positive news coming from outside our borders the Rand is still not out of the woods. The reason is that as an economy the Rand is still at risk from a structural perspective. The South African economy still has twin deficits, labour issues, productivity and possible electricity supply problems. South Africa will need to manage these issues before we will see a strong recovery in the Rand.

International news

Apart from the Chinese data which surprised on the upside we are awaiting data from the Eurozone and the UK, which if also comes through on the upside then could mean the Rand may strengthen.I f it manages a sustained level below the 9.775 which is a resistance level, it could possibly open up to lower USD/ZAR levels. Investors are still keeping focus on any FED announcement regarding the easing of QE

TODAYS KEY DATA POINTS:

7am+: SA earnings (GRF, RBP)

Foreign exchange South Africa– Let one of our professional consultants at Currency Solutions assist you. To know more about how we can help you Contact Us.

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